ISO Certified Premium Startup Consultancy Company
ISO Certified Premium Startup Consultancy Company
The term “Nidhi” means a treasure. It is regulated under section 406 of the Companies Act 2013 and Nidhi Rules 2014. Nidhi Company is referred to as one of the kinds of NBFC. But no RBI approval is required to incorporate a Nidhi company as it is the exempted category.
Its main objective is to lend and borrow money amongst its members and to cultivate the habit of savings amongst its members. Nidhi companies are mostly incorporated in the southern part of India. Nidhi Company is incorporated in a style of a public company as it must have a minimum of 7 subscribers and a minimum of 3 directors and its name end with the words “Nidhi Limited”.
There is no need to get any license from RBI for borrowing and lending of money. Since Nidhi Companies are governed by Nidhi Rules 2014 so they have the least intervention by RBI. There is lesser risk involved in the repayment of loans.
As we have discussed in the introduction part about the Nidhi company registration and its benefits, please note that the process is very simple but you will be requiring an expert for following the procedure.
1) Directors and Members: There should be 3 directors along with 7 members. An individual can be a director and a member as well. Both can be the same.
2) Digital Signatures: In the Nidhi company registration process the primary requirement is the Digital Signature of the directors as well as the subscribers even if the subscribers do not have DIN no.
3) Consent on Name: In the Nidhi company registration process, the initial step is to select and suggest 2 names to proceed with because MCA is all set to reject 1 name and will give approval to only one name. Along with that, the objects will be also sent for approval.
4) AOA & MOA: Now the second step of the Nidhi company registration process is that the Application gets submitted along with the Article of association and memorandum of association. After that, the Ministry will issue COI.
5) PAN & TAN and opening of current account: Apply PAN and TAN after incorporation and you’ll receive the same within a week. After receiving the PAN & TAN, you need to submit MOA, AOA, PAN, and COI to the bank to open the current account of your company.
So we would like to clarify that the process of Nidhi company registration is completely online. It was done to make the process simpler and easier for the stakeholder and to implement the ease of doing business in India. To reduce the physical visit to the department the process for Nidhi company registration online was executed by the Ministry of Corporate Affairs so that new entrepreneurs or business owners were encouraged to get the company formation.
1) Nidhi company cannot do any chit fund activity, hire purchase, and lease financial activities. Nidhi Company cannot lend or borrow money from any person other than its members.
2) Minimum paid-up capital requirement is Rs 5,00,000
3) It’s not allowed for Nidhi Company to issue preference shares, debentures, or any debt instruments.
4) Only secured loans can be given i.e. insecurity of any gold, silver, or any other valuable jewel.
5) The period of repayment of the loan should not exceed one year.
1) Nidhi Company has to maintain a minimum of 200 members within a time period of one year from its date of incorporation.
2) The net owned funds must be 10 lakh rupees or more, where Net owned funds is equal to Share capital + Free reserve including premium (-) accumulated losses (-) intangible assets.
3) The ratio of net owned funds (NOF) to deposits shouldn’t exceed 1:20,
4) Savings account must be opened so that INC-20A fulfillment can be made.
5) After fulfilling all such conditions NDH-1 must be filed within 90 days from the end of the first financial year after incorporation. It is a return of statutory compliances.
6) Form NDH-3 must be filed within 30 days from the end of each half-year. It is a half-yearly return.
7) Form NDH-4 must be filed within one year from the date of incorporation or within six months from the commencement of Nidhi Rules 2019 in the case of existing companies. When the company is newly incorporated then must be filed within sixty days from the date of expiry of one year from the date of its incorporation.
In this form, Nidhi Company must make a declaration that it is complying with all the rules and regulations. In case Nidhi Company does not fulfill the requirements of this rule, it cannot file form SH-7 and PAS-3.
8) One form is required to be file for the extension of time that is Form NDH-2 and the time period is within thirty days from the end of the first financial year. This form is used when Nidhi Company fails to comply to maintain the members up to 200 and the ratio of net owned funds to deposits more than 1:20.
9) Normal annual filing forms are the same as other registered companies with the same time limit that is formed AOC-4 and forms MGT-7.
Once Nidhi Company gets incorporated, we have to take the GST Registration on Nidhi Company. The process of GST on Nidhi companies is almost the same as we do for some other public company.
2) Generate TRN of Nidhi Company by submitting all specific details.
3) With the help of TRN, File the GST application over the portal.
4) Attached the necessary documents as required like Electricity bill, Rent agreement, Consent letter, Photographs of directors, etc.
5) Once the application got filled, it’s been submitted with the help of a digital signature, or can say DSC.
6) If the application has all the valid information related to Nidhi Company then Department will allot ARN Number.
7) Further, a new step is announced by the GST department, to verify from the Adhar card.
8) OTP comes on mobile number director if his Adhar is linked.
9) After submission, if the department satisfies all data then allot the GST Number.
Remember: Adhar must be linked with the mobile number which will be used for GST Registration.
Nowadays Nidhi companies are in trend in the financial market. There are several benefits of Nidhi company registration and it is safe finance providing company at a very cheap cost, to its members.
The Neusource Startup Mind is the finest business startup consultant that offers various services of registration like Proprietorship Firm Registration, Partnership Firm Registration, LLP Registration, Company Registration, GST Registration, Copyright Registration, ISO Registration Trademark registration, and other FSSAI License, etc.
14 Mar
"Any time is a good time to start a company.” Neusource indulge in providing business consultancy services which help startups to accomplish their desired results as a TAJ EXPRESS. If you’re passionate about something and you work hard, then neusource is the right choice for you.
